Eden Real Estate – Eden Realestate Region, Bega & Merimbula

Remortgages, mortgages and secured loans all form part of what are known as home loans. This being the case means that they are only granted to homeowners.

A remortgage, as the prefix clearly states, is the redoing of something and in the case of a remortgage it is the rearranging of a current mortgage.

A remortgage is a new mortgage that replaces a current mortgage.

Remortgages and mortgages are based on the equity of a property , and equity is the difference between the value of a property and the mortgage balance. This means that if a property is worth 300,000 and the mortgage balance or the required remortgage is 150,000 the available equity is 150,000.

Unlike in the past 100% remortgages and mortgages are no longer available let alone the 125% mortgage that used to be available from the Northern Rock Building Society, and remember what went wrong there.

This is all in the past and 125% LTV remortgages and mortgages no longer exist.The 25% LTV mortgage recently introduced by the Nationwide is only a plan to help existing customers who have no equity in their property due to the current economic climate.

If they owe more on their existing mortgage than the house is worth they can obtain a mortgage on their next property of 125%.

Now although most mortgage lenders are more comfortable to lend at 75% LTV or even less a few grant mortgage and remortgage advances of 95% with a few more lending up to 90%.

Equity is one of the most important facts that a mortgage lender considers when advancing mortgages and remortgages, and at 60% LTV remortgages and mortgages are available from 1.98% which is the best rate in the history of the mortgage industry.

Another major difference pre and in the middle of the recession is the situation regarding pure self certifications of self employed earnings. Only two building societies even consider self declarations now, but even at the last minute they may require further income proof in official format.

Before the credit crunch self certification was rife, and this in fact precipitated the recession itself.

Things in the mortgage industry have certainly tightened up.

Want to find out more about mortgages then visit Champion Finance’s site and choose the very best mortgage for you.

Tags: eden realestate, home improvements, home loans, mortgages, real estate, refinancing, remortgages, secured loans